Vivus Inc. grossed $17.5 million after completing a private placement of about 4.4 million common shares.

The Mountain View, Calif.-based firm said it would use the net proceeds for general corporate purposes, including the possible licensing of new technology and for clinical development programs in the areas of female sexual dysfunction, erectile dysfunction and premature ejaculation.

"We have several drugs that have shown positive results, and with our patent positions we have a good opportunity to capitalize on this," Richard Walliser, Vivus' chief financial officer, told BioWorld Today. "We don't need the money and it's always best to raise money when you don't need it."

Though he said the per-share price was less than ideal, Walliser added that the funding would support Vivus' business operations through next year. The $4 per-share price reflected about a 9 percent discount to the five-day trailing average ended May 21. Vivus' stock (NASDAQ:VVUS) fell 17 cents Wednesday to close at $5.12.

Once registered, the newly issued shares would increase Vivus' outstanding total to 37.5 million.

Recent drug development efforts at the company center on Alista, a formulation of alprostadil applied to female genitalia to treat female sexual arousal disorder. Alprostadil is a synthetic version of prostaglandin E1, a naturally occurring vasodilating agent. Alista is designed to increase blood flow to the female genitalia, promoting engorgement and other natural processes that occur during sexual stimulation.

Vivus has completed two Phase II trials in post-menopausal women. Other trials in the program continue in an effort to broaden the product's uses, including a study of the topical product in premenopausal women.

Walliser said Vivus remains engaged with the FDA to develop a Phase III protocol.

Two male sexual dysfunction products also are under development at Vivus, which already markets two erectile dysfunction devices, one of which delivers alprostadil.

Near the end of next month or early July, the company expects to report data from a trial of VI-0162, its orally administered premature ejaculation product. That trial began in November, just after Vivus reported positive results from a study of TA-1790, its phosphodiesterase Type 5 inhibitor designed to treat erectile dysfunction.

The Phase I trial, which used a RigiScan device to measure penile rigidity in association with visual sexual stimulation, demonstrated that peak efficacy response to the oral drug was comparable or greater than that observed with Viagra (sildenafil citrate, from New York-based Pfizer Inc.). Also, the peak penile response with TA-1790 occurred 20 to 40 minutes after administration, while Viagra's peak response occurred 60 to 120 minutes later.

"It's essentially a competitor to Viagra, Cialis and vardenafil," Walliser said. "Its profile indicates that it has some superior indications to those three, and we're hoping that if we can continue to prove that in its clinical development, we might be able to capture part of that market."

Cialis (tadalafil) is being developed in a joint venture between Indianapolis-based Eli Lilly & Co., of Indianapolis, and Bothell, Wash.-based ICOS Corp. Levitra (vardenafil) is produced by Leverkusen, Germany-based Bayer AG. Walliser said TA-1790 appears to have a better safety profile than would-be competing phosphodiesterase inhibitors - it does not lower blood pressure or affect optic nerves and has the shortest half-life among the group, he said.

Additional trials are planned to study TA-1790's efficacy in an at-home dosing setting. It continues to be studied in combination with the company's transurethrally delivered alprostadil product.

The shares were purchased by investors consisting of accounts managed by Zesiger Capital Group LLC, of New York; SAC Capital Associates LLC, of New York; Royal Bank of Canada, of Toronto; Baystar Capital II LP, of San Francisco; and Special Situations Funds.

New York-based C.E. Unterberg, Towbin acted as the exclusive placement agent.